CHAPTER 4

CSR INITIATIVES BY AMBUJA CEMENT LIMITED

(DARLAGHAT PLANT)

The first four objectives of the study were related to the CSR activities of selected company:

1. To analyze the CSR practices adopted by companies in relation to community.

2. To examine the factors those motivate the selected companies to engage in CSR
practices.
3. To identify the processes that the organizations follow to deliver CSR practices.
4. To identify the challenges faced by the companies while implementing CSR practices
within the community.

The responses from the managers responsible for CSR activities related to these
objectives were taken on questionnaire as given in Appendix A. The concerned managers
were interviewed on the similar dimensions as present in questionnaire to generate deeper
insights. In addition to this, CSR sustainability reports of the companies were analyzed in
detail to achieve these objectives. The analysis of the data is presented below.

4.1 COMPANY PROFILE AND CHARACTERISTICS

Ambuja Cement Ltd. is a part of global conglomerate Lafarge Holcim. With the unique
sustainable development projects and environment practices, Ambuja cement is providing
home building solutions since the inception of the company. Currently, Ambuja Cement has a
cement capacity of 29.65 million tons with its five integrated cement plants and eight cement
grinding units across the country. Ambuja Cement is the industry leader, in terms of
responsible use of both natural and man-made resources. The company has been certified,
water positive because it is involved in various projects to minimize the scarcity of water both
for cultivation and irrigation purposes and in making the region around it water positive. [152]

Sustainable growth is embedded in the company’s DNA. Ambuja Cement followed a

multi-level strategy including triple bottom line method of accounting, corporate governance

85
practices, environmental policy directed towards company’s sustainable growth and
development.

The company has a separate department in the name of Ambuja Cement Foundation,
to carry out CSR activities. The company has undertaken projects for the local community
around its different locations. The company is having its plants in 21 locations across 11 states
of India. ACF adopted need based and participatory programs in the areas of community
development with special focus on education, health, women empowerment, supporting and
training farmers, skill development, awareness campaigns, environment management, and
waste management. It also provides support to various projects in relation to the local
community.

4.2 CONCEPTUALIZATION OF CSR

Ambuja Cement Foundation (ACF) aims to ‘Energise, Involve and Enable Communities to
Realise their Potential’ through its various projects in relation to community development.
The foundation has taken various projects that lead to socio-economic development of the
communities around the company. The foundation has undertaken these projects and
initiatives in association with community, governmental and various non-governmental
organizations. The sustainability reports of Ambuja Cement foundation reflects that the
management considers the societal expectations in the form of Corporate Social Initiatives,
and integrates them into business practices, in such a way that the business operates in
accordance with societal values.

4.3 CSR PRACTICES AND CSR FOCUS AREAS OF THE COMPANY

Supporting Education & Providing Scholarships: In support of education, the ACF’s CSR
representative responded that their foundation provides scholarship to primary classes,
technical courses and diploma holders (in ITI). The foundation is also sponsoring and
donating money by providing amenities to the primary schools. By considering the child
centric focus; ACF has also trained “Balmitras” or a child’s friend who helps the child with
studies through various teaching and learning methods. The foundation also organizes various
cultural programs, especially sports day and youth care programs, AIDS awareness campaigns
etc. The foundation provides support to youth clubs for various cultural and sports programs.

86
The foundation also organizes blood donation campaigns under which the employees as well
as people from local community also participate.

Women Empowerment: ACF provides support to various women (pickles making, sewing
and embroidery) groups by providing funds to them. ACF Darlaghat has a sustainable method
of ensuring health services in the village by training women in preventive, promotive and
clinical care. These women are called ‘sakhis’ who work tirelessly for this cause. Under Pashu
Swasthya Sewika (PSS), women workers were trained to provide information at village level
that provide complete information for animal artificial insemination with a success rate of
more than 80%.

Communities: Building water positive communities: To overcome the challenges that

centered on water conservation and management, ACF Darlaghat embarked a mission to
minimize the scarcity of water for both drinking and cultivation and to make the region water
positive. This intervention started with watershed projects in partnership with NABARD and
also by creating awareness in the community on harvesting methods and rain water
management. ACF also promoted Roof Top Rain water harvesting system and micro-
irrigation system (Drip Irrigation in villages), construction and renovation of new ponds,
building of check dams, irrigation channels and water conservation trenches.

Skill Training: ACF has established the Skill and Entrepreneurship Development Institute
(SEDI) across 10 states including Himachal Pradesh. At Darlaghat, PNB is associated as the
partner and the institute is managed by Institute of Skill and Entrepreneurship Development
(ISED). The most popular courses in Darlaghat (H.P) is the hosiery course which is
empowering women to contribute in family income.

Supporting Farmers: The foundation organizes and conducts various camps related to
Horticulture and Agriculture. In order to conduct these camps, they call field specialists to
guide farmers on various horticulture and agriculture related issues.

The ACF also conducts waste management practices, especially by providing garbage
bins at various places. The foundation has undertaken environment management practices
specifically tree plantations in collaboration with schools and forest department.

87
CSR activities in relation to environment: The ACF representatives undertake CSR
activities in relation to environment specifically tree plantations in collaboration with forest
department and schools. The foundation has also installed garbage bins at several places in the
community.

4.4 FACTORS THAT MOTIVATE THE SELECTED COMPANY TO

ENGAGE IN CSR ACTIVITIES

Among the listed factors; ethical and moral reasons, to comply with legal requirements, to
improve community relations, a commitment to reduce the impact on the environment, and to
return back to the community are the motivating factors that are significant from the
perspective of CSR manager. Whereas, to improve customer loyalty, to improve employee
motivation, to improve relationship with business partners, to improve economic performance,
pressure from third parties, to avail public incentives and to improve or preserve the
reputation of the company are insignificant motivating factors from the CSR manager
perspective.

4.5 PROCESSES USED IN PLANNING AND IMPLEMENTING CSR

ACTIVITIES

In this regard, the CSR manager responded that the company carries out its CSR activities
through Ambuja Cement Foundation (ACF), a separate department with a manager devoted to
CSR engagement with a commitment to engage rural communities in and around ACLs
manufacturing locations. They further provided that the company evaluates and improves the
planning and implementation of CSR through social engagement scorecard and 3rd party
evaluators. The foundation report on the progress of CSR initiatives is achieved through CSR
sustainability reports.

The community is found to be the major stakeholder for the company among other
stakeholders which include employees, government, environment, trade unions (specially
truck operator’s union in Darlaghat). The ACF representatives involve the community
members in various stages of CSR planning and implementation. The representatives
undertake need based assessment which is being done at the community level depending upon
which CSR activities are prioritized. The foundation has also undertaken watershed

88
development projects in collaboration with NABARD. Stakeholders are engaged through
quarterly meetings.

The ACF manger responded that they involve the community members in CSR related
processes. The community members are engaged mainly through monthly visits, household
visits and one to one discussions.

4.6 CHALLENGES INVOLVED IN CSR IMPLEMENTATION

The CSR manager provided the list of the regional challenges; first the terrain is a major
challenge while implementing CSR, which directly affects the project costs. Secondly, scarce
population of the area is another challenge that the managers are confronted with while
implementing CSR. The CSR manager reported that the challenges themselves act as a barrier
for CSR implementation. The manager also responded that amendment in the Company’s Act
in relation to CSR has not affected their CSR strategy as the company is into CSR since the
year 1993.

89